Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Euro Price Chart: EUR/USD Holding Multi-year Trend Support

Euro Price Chart: EUR/USD Holding Multi-year Trend Support

What's on this page

Euro Price Chart: EUR/USD Holding Multi-year Trend Support

Euro is down more than 0.4% this week with price now testing multi-year slope support late in the month. These are the updated targets and invalidation levels that matter on the EUR/USD weekly price chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this gold price setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

Euro Price Chart – EUR/USD Weekly

Notes:In my last EUR/USD Price Outlook we highlighted that the Euro rally was, “testing initial resistance targets here around 1.14 and while the broader focus remains higher, the advance is vulnerable near-term heading into the yearly open- Watch the weekly / monthly close. Price closed that week at 1.1368 before turning lower with EUR/USD testing a key slope support for the past three weeks.

Note that Euro has been unable to mark a weekly close below the lower parallel of the broad ascending pitchfork formation we’ve been tracking off the 2015 / 2017 lows – the focus is on a reaction off this threshold with the bears at risk while above the 61.8% retracement at 1.1186. A break / weekly close below would be needed to keep the short-bias viable targeting 1.1107 and former channel resistance, currently around ~1.1050. Resistance steady at 1.1393 with a breach above the yearly open at 1.1445 needed to suggest a larger advance is underway targeting 1.16.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line:Euro has been testing this slope support since mid-April and leaves the immediate short-bias vulnerable. From a trading standpoint, a good place to reduce short-exposure / lower protective stops – watch the weekly closes for guidance. Look for downside exhaustion ahead of 1.1186 IF prices are going to hold this slope with a breach above 1.1445 needed to shift the broader focus higher. I’ll publish an updated Euro Price Outlook once we get further clarity in near-term EUR/USD price action.

Even the most seasoned traders need a reminder every now and then- Avoid these Mistakes in your trading

Euro Trader Sentiment (EUR/USD)

EURUSD Posistioning
  • A summary of IG Client Sentiment shows traders are net-long EUR/USD - the ratio stands at +2.03 (67.0% of traders are long) – bearish reading
  • Traders have remained net-long since July 1st; price has moved 0.7% lower since then
  • Long positions are 3.5% lower than yesterday and 2.0% lower from last week
  • Short positions are 13.9% lower than yesterday and 16.0% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Euro prices may continue to fall. Traders are further net-long than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger EUR/USD-bearish contrarian trading bias from a sentiment standpoint.

See how shifts in Euro retail positioning are impacting trend- Learn more about sentiment!


Key Eurozone / US Data Releases

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide !

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.